Explaining the Variability of Apartment Rents |
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Authors: | Karl L Guntermann Stefan Norrbin |
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Institution: | Department of Finance, Arizona State University, Tempe, Arizona 85287.;Department of Economics, University of Alabama, University, Alabama 35486. |
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Abstract: | The research reported here uses regression analysis to analyze rent variations in a sample of apartment data from the Phoenix metropolitan area. Many of the variables used in hedonic price studies of houses are found to be significant in explaining variations in apartment rent. There are differences between hedonic studies of houses and apartments particularly with respect to common area features or amenities. The analysis of various submarkets also produced interesting results. Various uses can be made of the results of this and similar studies by appraisers (market-derived adjustments), property managers (setting rents) and feasibility analysts (the design of apartment projects). |
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